CFA seeks funding for improved consumer advocacy

CFA needs financial support to deliver improved advocacy and research for Australian consumers and better services for its member consumer organisations

The Consumers Federation of Australia has sought funding from the Commonwealth to support its expansion as the national peak body for consumer organisations and consumer advocates. The submission – Making Markets Work Better – seeks $1.38 million per annum to deliver consumer advocacy and research, to provide member services and to support consumer representation.

CFA has been operating as the national peak body for consumer organisations since 1974, but due to resource constraints, it is currently only able to offer an extremely restricted service to its members, government and industry. An expanded and adequately funded CFA would:

  • deliver a strong consumer voice in policy and regulatory considerations, and provide government and industry with well informed policy ideas and proposals
  • collect and collate from members the data needed for evidenced-based policy
  • assist members to coordinate and contribute to policy development
  • disseminate government and industry information to, and collect information from, consumer and community organisations through a single entry point
  • provide government and industry with access to clusters of expertise on consumer issues
  • coordinate and support consumer representation on government, industry and standards development bodies
  • facilitate networking, information sharing and development amongst members, and the cross-fertilisation of ideas across policy silos.

In its 2008 review of consumer policy, the Productivity Commission concluded that there was a prima facie case for government support of consumer advocacy, and recommended that government funding be used to support the basic operating costs of a national peak body for consumer organisations (recommendation 11.3). The Productivity Commission recognised the value of consumer advocacy, the fact that there were gaps in the current landscape for consumer advocacy, and that there were limited sources of funding available for consumer advocacy. The cost of funding consumer advocacy is greatly outweighed by the benefits in improved consumer policy and improved consumer outcomes.

CFA has an existing membership base across all States and Territories, a well-recognised brand, a strong Executive Committee, and a record of effective advocacy, coordination and communication. In the absence of appropriate funding in recent years, CFA has focused on delivering and improving services to members and consumer representatives. However, it is well placed to expand its role and services once funding becomes available.

A sustainably funded CFA will continue to be a member-based organisation, with the following core functions:

  • policy, advocacy and research
  • engaging members and facilitating their involvement in consumer policy
  • member services and consumer representation.

A sustainably funded CFA will facilitate better consumer policy outcomes, and lead to more efficient, effective and competitive consumer markets, generating benefits for the economy, and assisting the Government to develop a world class consumer policy.

For a modest outlay, this proposal will enable to the government to deliver on the Productivity Commission’s recommendation 11.3. It will also provide a means to meet current unmet government need for consumer input.

Click for  a full copy of CFA Budget Submission – Making markets work better – Jan 2013